The Unlisted Trading Privileges (UTP) Operating Committee, comprised of exchanges, FINRA and financial industry advisors, today announced the migration of the Securities Information Processor (SIP) to a new system using INET technology for UTP data services.
The technology upgrade significantly improves the efficiency, resiliency, and reliability of the SIP in a meaningful and measurable way. The SIP is relied upon by financial institutions and millions of investors.
The UTP SIP collects, processes, and disseminates in a single, consolidated and easily consumed data feed the best bid and offer quotations and all trades from each registered exchange and FINRA. The UTP SIP disseminates critical regulatory information including the National Best Bid and Offer (NBBO), Limit Up-Limit Down (LULD) price bands, short sale restrictions, and halts.
On October 26, 2015, exchanges that comprise the UTP Operating Committee signed an agreement to retain Nasdaq to manage the UTP SIP for all Nasdaq-listed securities. As a part of that agreement, the Operating Committee directed Nasdaq to implement a major technology upgrade of the SIP, which is an integral component of our U.S. market infrastructure. The new UTP SIP system:
Reduces Latency by 95 percent through upgrades to software and hardware - the median latency of the SIP decreased from 500 microseconds to less than 20 microseconds, resulting in a service that is 25 times faster - a full calendar year ahead of the contract commitment of less than 25 microseconds
Increases Resiliency & Reliability via industry proven robust architecture offering active/active redundancy, dynamic failover, and active/active disaster recovery
Increases Capacity via a distributed system capable of handling a peak rate of 2 million messages per second, per data feed
Improves Scalability by utilizing a highly scalable architecture that responds to capacity demands quickly
Uses Binary Protocols to increase message efficiencies to reduce latency and bandwidth consumption
“The UTP Operating Committee is committed to fulfilling our objective of supporting and promoting price transparency within our markets, for the benefit of all investors,” said Emily Kasparov, UTP Committee Chair and Vice President, Associate General Counsel, and Corporate Secretary of the Chicago Stock Exchange, Inc. “The new UTP SIP, which was built using the Nasdaq Financial Framework and INET technology, fulfills that objective through the creation of a world-class system used to disseminate consolidated quotes and trades.”
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